U.S. District Court Judge Philip Gutierrez agreed with the Long Beach Chamber a few weeks ago: Political Action Committees (PACs) are exempt from adhering to the same contribution limits set for Long Beach City Council and Mayoral Candidates.
 
(Full Disclosure: I am the former Vice President of Government Affairs for the Chamber and its current Government Affairs Advisor)
 
Long Beach’s contribution limits were established under the voter-approved Campaign Reform Act of 1994. Currently, individuals can voluntarily contribute $350 to city council candidates and $650 to mayoral candidates.
 
City Attorney Bob Shannon’s interpretation of the 1994 Reform Act extended those contribution limits to PAC’s as well. In other words, the Chamber’s PAC could only collect a $350 contribution per person for their City Council PAC and a $650 per person contribution for their Mayoral PAC. These contribution limits on the Chamber’s PAC dramatically hindered its ability to raise money. The Chamber believed the City Attorney’s interpretation limited their constitutional right to free speech.
 
Also, contrary to reported comments in the local media by Shannon and other elected officials, the Chamber’s PAC is funded by voluntary donations, not by Chamber member dues. I am tired of elected officials going after the Chamber under the assumption that the Chamber is using its member’s dues for PAC efforts. Stop it. It’s not true.

In the end, the court ruled in favor of the Chamber.
 
Interesting Point:
 
The court’s ruling impacts ANY organization, not just the Chamber. This includes, for example, labor organizations.
 
So far, no Long Beach elected official has publicly attacked a labor organization or any other organization for benefiting from the Chamber’s lawsuit against the city.
 
Shannon vows to appeal. His reason is principled. Time for a reality check: Shannon’s appeal threat is clearly a strategic move to get the Chamber to back down from seeking their reimbursement from the City for legal fees since they won the case.
 
It will be interesting to see how this plays out.